Centre not to prevent public sector banks from entering non-banking sector - India News and Travel Times Provides India-centric and other News and Features

The Centre on Wednesday said it has no intention to prevent public sector banks from entering into non-core businesses like insurance and mutual funds. Interacting with media, Financial Services Secretary R Gopalan said: "There is no issue at all. We have never asked and there is no thinking in the ministry." A section of the media reported that the Union Finance Ministry might ask state-run banks, to exit non-core businesses. "The banks have to expand in various financial product activities so you cannot prevent them from getting into it," Gopalan said. He said, the Centre would take a decision to infuse Rs 16,500 crore in capital in the public sector banks by the end of April.